Family allowances as pareto improvements

The present paper studies the equilibria of a simple overlapping generations model of pure exchange in which money is traded. there is a continuum of agents in each generation and population growth is endogenous via voluntary decisions on children . any monetary steady state has to satisfy the "golden rule" that the interest rate equals the growth rate. still such a monetary steady state is pareto-inefficient. it can be shown that there exists a transfer scheme in favor of those, who raise children, which pareto-improves upon any steady state.;